Achieving High-Performance Federal Facilities Strategies and Approaches for Transformational Change (2011) / Chapter Skim
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Appendix I: The Economics of Sustainability: The Business Case That Makes Itself--Greg Kats
Appendix I: The Economics of Sustainability: The Business Case That Makes Itself--Greg Kats
Pages 135-144
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From page 135... ...
Figure I.2 shows data collected for utility bills, principally energy and water, for green office buildings. The additional cost of building green is about 2 percent, or $4 to $5 per square foot.
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From page 136... ...
FIGURE I.2 Costs and benefits of green buildings: presenti-2.eps 20 years of estimated impacts based on study data set fig value of collected from recent green buildings. SOURCE: Greg Kats, Capital-E and Good Energies.
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From page 137... ...
Moreover, because there is a lot of uncertainty about energy and water costs -- which are volatile and tend to rise faster than inflation -- it is also a risk reduction strategy. If you consider the larger set of benefits that accrue over 20 years -- improved health, indirect energy savings, reduction of emissions, operations and maintenance savings, and so on -- the savings add up.
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From page 138... ...
The kind of vision that the General Services Administration is laying out, in terms of very deep reductions, is supported by what we know about the actual cost premiums of deep reductions. Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance, sets somewhat ambitious goals for federal agencies, but it could go much farther.
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From page 139... ...
On the topic of green affordable housing, I had the good fortune of being the principal advisor in developing the Green Communities Criteria, which is now the national standard for design of green, affordable housing,3 with 20,000 units built. The design and construction cost premium is about 3 percent, but the utility bills for these units are about 35 percent lower than those for conventional units.
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From page 140... ...
So, this larger brand aspect is hard to quantify, but ultimately it may be perhaps the largest driver in promoting green buildings. We are also starting to see a significant premium for green buildings in terms of increased rental rates, FIGURE I.5 Comcast Building, Liberty Property Trust.
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From page 141... ...
for the Clinton administration, and early DOE support for this technology illustrates the kind of impact that federal support for research and development of fundamental technology can have. Figure I.8 illustrates recent work by the Federal Energy Regulatory Commission (FERC)
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From page 142... ...
report: demand response potential. SOURCE: FERC, Assessment of Demand Response and Advanced Metering,bitmap w 3 vector masks 2008: assumptions: smart meters, dynamic pricing default, enabling technologies.
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From page 143... ...
fig i-10.eps bitmap FIGURE I.10 Greening = wealth and jobs creation. Net present value (NPV)
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From page 144... ...
Well, there is an upfront cost premium associated with greening all of those buildings. However, the direct energy savings resulting from green buildings creates about $350 billion in current value to society.
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